Last updated: 2026-06-09
What this helps you prepare
A cost segregation review moves faster when the acquisition file, closing statement, depreciation schedule, site plans, construction records, and major improvement invoices are organized before the study begins. The point is not paperwork for its own sake; it is to find supportable components that can move depreciation into current cash flow instead of leaving the whole building in a long-life bucket.
Before kickoff
- Confirm the property placed-in-service date
- Identify whether the return is still open or already filed
- Separate acquisition, renovation, and tenant-improvement records
- Note any prior studies or partial asset dispositions
- Flag deadlines that could affect the CPA review calendar
Useful documents
- Settlement statement and purchase allocation details
- Current depreciation schedule
- Appraisal, inspection, and construction documents
- Capital improvement invoices and placed-in-service dates
- Prior cost segregation reports, if any
- A short estimate of whether a deeper study is likely to create meaningful benefit
Review questions
- Are there planned renovations that could change the asset mix?
- Were any building systems replaced soon after acquisition?
- Does the ownership group need a high-level estimate before approving a full study?
- Which advisor will reconcile the final study to the tax return?
Planning note
The best review window is usually before the return is finalized, but look-back opportunities may still exist for properties already placed in service.
IRS timing note reviewed July 3, 2026
IRS guidance reviewed July 3, 2026 confirms that the One Big Beautiful Bill restored permanent 100% bonus depreciation for many qualified assets acquired after Jan. 19, 2025. That makes the cost segregation screen more time-sensitive, but it does not remove the need to confirm acquisition timing, placed-in-service facts, elections, taxpayer fit, passive-activity limits, and CPA review.